Philip Hammond puts Theresa May under pressure to pay more for Brexit divorce bill

Philip Hammond has put Theresa May under pressure to promise more money for the Brexit “divorce bill” by suggesting an improved offer will be made to Brussels within three weeks.

Asked if it would soon be clear “what the bill is going to be”, the Chancellor said he was “sure” Britain would set out its financial proposal to the EU in time for a crucial meeting of EU leaders on December 14.

But Brexiteers in the Cabinet are expected to use a crucial Cabinet Brexit committee meeting on Monday to demand that Mrs May sets out exactly what Britain expects to get for its money before a penny more is promised.

Boris Johnson, who sits on the six-person committee, will try to block any move to pay a bigger divorce bill unless Mrs May can be clear about the “end state” she expects the EU to agree to.

He is backed by his influential Cabinet ally Michael Gove. Mr Hammond’s comments contrast sharply with Mrs May’s public stance that Britain will pay around £18 billion to the EU to honour its financial commitments during a two-year transition period.

She has accepted that the figure is “not the final word” on what Britain is prepared to pay, but both she and David Davis, the Brexit Secretary, have told the EU that it is their turn to compromise.

The Chancellor’s apparent attempt to force Mrs May’s hand will do nothing to improve their strained relationship ahead of Wednesday’s Budget, which could prove to be his last if it fails to inspire voters.

Mr Hammond told the BBC’s Andrew Marr: “We will meet our obligations to the European Union and we want to make progress in the discussions at the December Council of the European Union. The Europeans have asked us for more clarity on what we mean by meeting our obligations.”

Asked if Britain will know in the next three weeks “what the bill is going to be”, Mr Hammond replied: “Well, we will make our proposals to the European Union in time for the Council, I’m sure about that.”

Mrs May will on Monday chair a meeting of the Cabinet Brexit committee, whose other members are Mr Johnson, Mr Gove, Mr Davis, Amber Rudd and Damian Green.

She is expected to face a unanimous call for more clarity on what she expects to get out of Brexit. Ministers have expressed frustration that with the key EU summit less than a month away, they still do not know exactly what Britain wants from the EU - a sentiment shared by negotiators in Brussels.

Mrs May insists Britain must be given a “bespoke” trade deal with the EU, but such fundamental questions as whether the Government would be prepared to settle in the short term for a Norway-style arrangement, paying for access to the single market, or a Canada-style deal, with some trade tariffs in place, remain unresolved.

The EU has insisted a bespoke deal is not possible. Mr Hammond and his fellow Remainers on the committee, Ms Rudd and Mr Green, are expected to tell Mrs May she must make an enhanced financial offer to get trade talks moving, but an ally of Mr Johnson said: “If there’s going to be an increase in the money we should be clearer on what the end state should be.

“The Brexiteers are pretty much agreed that we need to present a clearer picture of what we want from any deal with the EU. That conversation is important and I would assume that is what the Brexit committee will talk about tomorrow.”

Mr Johnson has said in the past that the EU can “go whistle” if it wants a huge divorce bill of around £60 billion, and allies have said in the past that “you don’t pay your bill at a restaurant halfway through, you pay at the end”.

However there is a growing sense in Whitehall that Mr Johnson and Mr Gove will, ultimately, sanction a divorce payment of up to £40 billion if they are satisfied that Britain is guaranteed a good deal.

Brexiteers close to the two men said yesterday that an enhanced financial offer to the EU did not necessarily constitute a “red line”.

The backbench Tory MP Jacob Rees-Mogg urged the Government to take a harder line to avoid falling into a "trap" on the divorce bill.

He told the BBC’s Sunday Politics: "They need our money. If we don't pay any money for the final 21 months of the multi-annual financial framework, the EU has about a £20 billion gap in its finances...so our negotiating position on money is very strong."

Fellow Tory Stephen Hammond said: "I think where we have to be clear is what we're paying for and what we're getting.”

Mr Hammond also suggested a trade deal with the EU might not be fully agreed until after Brexit day in March 2019, saying: “We hope that it will be agreed, certainly in principle, the big elements of it will be agreed before March 2019, so that everybody knows where we’re going.”

Meanwhile Mr Hammond used an interview on ITV’s Peston on Sunday to hit back at his critics, many of whom have been in Downing Street during his time as Chancellor.

He said: “If you stick your head above the parapet, there will be people who take potshots at it.

“I spent most of the last year listening to predictions of my demise, I’m just getting on with the job, there’s a big budget to do on Wednesday.”